Maple Leaf Foods Inc

The company has set a Science-Based Target to align with the well-below 2°C scenario, aiming to reduce absolute Scope 1 and 2 emissions by 30% by 2030, using 2018 as the baseline. Additionally, it seeks to reduce Scope 3 emissions intensity by 30% per tonne of products by the same year. However, the company lacks a specific methane emission reduction target for animal farming.

The company has set Science-Based Targets to reduce absolute Scope 1 and 2 emissions by 30% and Scope 3 emissions intensity by 30% by 2030, from a 2018 base year, aligned with a well below 2°C scenario. It has maintained carbon neutrality since 2019 but has not yet established a Net Zero target.

For the third consecutive year, the company has collaborated with Nutrien to enhance its involvement in regenerative agriculture and participate in a carbon programme that offers comprehensive support to growers. This aligns with the company's objective of sourcing sustainable feed by lowering the carbon footprint of its crop purchases. The programme educates and incentivises farmers on practices that improve nutrient-use efficiency, crop yields, and soil resilience, focusing on nitrogen management and no-till farming. These practices contribute to a more sustainable cropping system with reduced carbon emissions, aiding the company in meeting its Scope 3 science-based target. Additionally, the company participates in regenerative agriculture projects beyond its supply chain through Indigo Ag, which promotes regenerative practices as a nature-based solution to climate change. Companies can obtain certified carbon credits through these programmes, rewarding farmers for practices that enhance biodiversity, soil health, and carbon sequestration.

The company's regenerative agriculture programme for cropping systems has expanded from 19,000 to 160,000 acres. It has doubled investments in regenerative practices annually for the past three years. Regenerative agriculture involves carbon-capturing methods, including no-till direct seeding, increased crop rotation, cover cropping, intercropping, nutrient management, and optimising crop inputs. The company employs the 4R approach to nitrogen management and no-till farming to reduce soil disturbances. These practices reportedly decrease nitrogen and carbon emissions while improving soil and crop health, enabling carbon sequestration.

The company does not engage in innovative projects to reduce or mitigate emissions from animal farming.

The company reports that in 2023, its Scope 1 emissions were 263,057 CO2e tonnes, Scope 2 emissions were 32,825 CO2e tonnes, and Scope 3 emissions were 2,314,289 CO2e tonnes.

The company reports Scope 1 emissions from livestock as 90,096 tCO2e, with animal and manure management contributing 1.0% and 2.5% respectively. Scope 3 emissions, primarily from purchased goods and services, amount to 2,044,994 tCO2e, incorporating emissions from third-party poultry and hog producers. These constitute 34.4% of overall emissions, with 9.4% linked to animal feed production. In 2023, Scope 1 land-use change emissions were 1,016 tCO2e, accounting for 0.4% of total emissions, compared to 4.5% for Scope 3 land-use change emissions. The company also provides a methodology and breakdown of its GHG emissions.

The company responded to the CDP Climate Change questionnaire in 2023, and its GHG emissions data has been audited by KPMG LLP.

Between FY2022 and FY2023, the company reports a 46.09% increase in total emissions (Scope 1, 2, and 3) from 1,786,839 to 2,610,171 tCO2e. Specifically, emissions from feed rose from 350,115 tCO2e to 217,543 tCO2e. Emissions from feed are calculated manually using percentages of 23.7% in 2022 and 9.4% in 2023, applied to Scope 3 emissions. For 2023, Scope 1 emissions were 263,057 tCO2e, Scope 2 emissions were 32,825 tCO2e, and Scope 3 emissions were 2,314,289 tCO2e.

The company engaged an independent third-party consultant to conduct a physical climate risk assessment and climate scenario analysis, as reported in its CDP and Integrated Reports. This helped it understand climate-related risks and potential impacts on its livestock, assets, supply chain, and operations.

The company identifies extreme temperatures, freezing weather, water stress, and extreme wind and rain as significant risks to its assets, operations, and supply chain. It operates in regions with medium to high water stress risk due to rising temperatures and potential drought, impacting the availability of feed and water for sanitation, key physical risks to its business. To mitigate these risks, the company has plans to diversify sourcing regions, maintain contingency protocols for extreme weather, ensure asset insurance, and reduce water consumption. In particular, increased extreme temperature days pose significant risks to livestock processing and animal health in Canada, notably in Manitoba and Ontario. Measures include temperature controls in processing facilities, barns, and trailers, with ongoing weather monitoring, though it acknowledges the uncertainty in the effectiveness of these efforts. The company does not specify direct cost implications for veterinary and medicine costs relating to temperature variability and extreme weather. It tracks rising utility costs across its operations and seeks to improve utility efficiency, supported by a dedicated energy efficiency budget. Each processing facility has targets to reduce consumption, contributing towards a 50% environmental footprint reduction goal and emission SBTs by 2025. Falling under the Canadian Federal Carbon Charge, the company remains exposed to provincial and national carbon taxation and regulations. It has implemented an internal carbon price within its operations to manage these risks proactively. However, it does not disclose the number of financially material events linked to climate risk during the reporting period.

The company has implemented an internal carbon pricing scheme that incorporates a carbon calculator tool. This tool factors in the cost of carbon in all capital expenditure requests and net asset return calculations, influencing capital decisions and operational practices. The company achieves carbon neutrality by using offset credits for emissions that cannot be directly reduced. However, it does not report any costs associated with climate risk.

In Canada, the company sources feed and feed ingredients, including soy and corn, from Saskatchewan, Manitoba, Ontario, and Quebec. According to its CDP disclosure, 94% of its soy is sourced from the USA and Canada, while 6% comes from China, all considered areas with low deforestation risk.

The company's Supplier Code of Conduct mentions deforestation and biodiversity, stating it will not procure soy from suppliers sourcing from high-risk areas. However, there is no evidence that the company supports soy producers to promote deforestation-free production or improve traceability.

The company is committed to conducting a deforestation risk assessment next year but does not disclose its current compliance monitoring process. It can trace 94% of its soy to the United States and Canada, with the remaining 6% sourced from China. However, it is unable to distinguish between soy sourced from Canada or the United States, affecting its traceability scores. The company may remove suppliers from its preferred list if they fail to comply with its supplier code of conduct.

The company invests in regenerative agricultural practices across its supply chain to reduce soil disturbance and enhance crop diversity. It has expanded the programme to cover 100,000 acres of land used for producing feed ingredients, offering farmers incentives and information to improve soil health.

In 2017, the company conducted a risk assessment that identified some processing facilities operating in high water stress zones, but it does not disclose information about operations in low-water stress areas. The assessment was performed with a third-party consultant and WWF Canada and found that no negative impact on environmentally sensitive watercourses was caused by the company. However, high fresh water threat areas and excessive water use were identified at some farm locations. In 2020, the company undertook a physical climate risk assessment and climate scenario analysis, determining that all operational regions face medium to high water stress risk due to temperature rise and increased drought risk. No further assessments have occurred in the past three years, casting doubt on the current accuracy of these findings. The company reports a total water consumption of 9,293,297 m³ in 2023. Water conservation and reduction are integral to its utility audit program and environmental sustainability plans at each facility. Efforts to reduce water usage include recirculating water in certain processes, equipment repairs and upgrades, adjusting water use during non-production hours, and employing high-tech, lower flow sanitation equipment.

The company does not disclose a time-bound water reduction target to reduce total water withdrawals at facilities in the reporting year.

The company reports consuming 9,293,297 m³ of water in 2023, an increase from 8,966,209 m³ in 2022, with 80% sourced from municipal water and 20% from wells. Water intensity rose from 12.9 to 13.1 units consumed per finished product. Despite KPMG LLP auditing its water consumption data, the company does not disclose withdrawals or consumption by water stress level, nor does it provide water-related CAPEX or OPEX information. Additionally, the company has not responded to the CDP Water Security survey for the current year.

The company does not address water usage in its feed supply chain. It does not discuss comprehensive guidance, support, or incentives offered to suppliers/growers on water usage and has not established a partnership with a third party to input into sourcing/farming strategy.

The company does not disclose feed water intensity or the proportion of feed sourced from water-stressed areas. Furthermore, the company does not provide evidence that it is investing in sustainable feed production from a water-use perspective.

The company does not disclose the proportion of animal protein commodities produced or sourced in water-stressed areas. It does not disclose information addressing water scarcity in its animal supply chain, nor does it discuss guidance it offers to animal farmers/suppliers on water usage.

The company does not disclose having established partnerships with third parties to input into sourcing/farming strategy, including water use.

The company reports no incidents of non-compliance with water quality permits, standards, and regulations in the last reporting year. A water risk assessment of its leased farms and facilities was conducted in 2017 with assistance from third-party experts, including WWF Canada. This assessment also evaluated water quality and pollution, concluding the company had not directly contributed to negative impacts on sensitive watersheds. However, no recent risk assessment has been conducted, and the previous findings may have changed. The company does not disclose wastewater quality or volume targets.

The company does not disclose the quality or volume of wastewater discharge. No evidence was found that wastewater-related data has been audited, and the company did not respond to the CDP Water Questionnaire in 2022.

The company does not disclose having improved the wastewater quality at the aggregate level compared to the previous reporting period or reduced the volume of wastewater discharged.

The company is investing in regenerative agriculture within its feed supply chains, which includes nutrient management practices. However, there is no evidence that it requires suppliers to implement nutrient management plans. Additionally, there is no indication of comprehensive guidance, support, or incentives provided to suppliers regarding nutrient management or fertiliser use in crop production. The company has partnered with Nutrien to expand its regenerative agriculture efforts. This programme assists farmers in reducing fertiliser use and managing nutrients in fields more effectively.

The company is investing in regenerative agriculture and has partnered with Nutrien to expand its project initiated in 2021. This project incentivises and trains farmers by providing feed grain for regenerative farming at a designated supply depot, focusing on soil management practices to enhance soil carbon sequestration, such as nutrient management, no-till direct seeding, crop rotation, cover cropping, and intercropping. However, the company does not provide information on pesticide use within its feed supply chain.

In 2023, the company recycled 1,234,100 metric tonnes of manure from its owned and leased hog barns by applying it as fertiliser to fields. This process, overseen by a certified agrologist, adhered to a site-specific nutrient management plan. Additionally, the company produces biogas from manure for on-site use at some facilities. The company conducted a water risk assessment of its owned and leased farms and facilities in 2017 with third-party consultants and WWF Canada, addressing water quality and pollution. It was concluded that the company had not directly contributed to negative water-related impacts on environmentally sensitive watersheds. However, the company has not performed any recent risk assessment, which suggests that the previous findings may no longer be current.

The company acknowledges the importance of manure management in reducing greenhouse gas emissions. In 2023, it recycled 1,234,100 metric tonnes of manure from its owned and leased hog barns by applying it as fertiliser to fields. Before application, a site-specific nutrient management plan is developed by a certified agronomist and registered with the Province of Manitoba for approval. However, the company does not disclose whether it exclusively sources animal proteins from farms with a nutrient management system.

The company does not integrate nutrient management performance into incentive schemes for farmers. It does not discuss innovations in manure or provide evidence of a community engagement plan in relation to pollution.

The company has an antibiotics policy addressing growth promotion, prophylaxis, metaphylaxis, therapeutic administration, and responsible use under veterinary supervision. It prohibits the use of medically important antibiotics for growth promotion and is a leader in Raised Without Antibiotics (RWA) programmes for pork and chicken in Canada, implementing advanced animal welfare practices in nutrition, specialised feeding, vaccination, and stringent biosecurity protocols. Animals requiring treatment with antibiotics are transferred to an alternative production stream. While the company bans prophylactic antibiotic use in its RWA chicken and pork operations, it is not transparent about its policy for other areas. It adheres to governmental and veterinary guidelines across all species and supply chains. Animal welfare is enhanced through robust biosecurity measures, vaccinations, avoidance of close confinement and physical alterations, and improved housing systems. Veterinarians oversee these practices, and employees undergo comprehensive education and training. Metrics on animal welfare are consistently monitored and reported.

The company reports a 99.3% reduction in antibiotic use in its hog production since 2014, with usage averaging 23.8 mg per kg of pork produced in 2023, down from 31.5 mg in 2022. However, this figure only applies to its own pigs, excluding the entire supply chain and poultry production. The company does not disclose antibiotic usage by type or provide reasons for antibiotics use during the reporting period. Additionally, there is no information on third-party audits for antibiotic quantities.

The company expresses its commitment to animal welfare through support for the Five Freedoms and the integration of these principles into its animal care practices to ensure both physical and mental well-being. It engages and trains employees on animal welfare issues across all operations, providing comprehensive training for those involved in the raising, transport, and processing of animals. These programmes ensure adherence to the company’s animal care policies, promoting humane treatment and enhancing welfare. The company participates in industry and academic initiatives to improve animal welfare. It is a member of the Global Coalition for Animal Welfare, chairs the Canadian Poultry and Egg Processors association, and sponsors the NSERC Industrial Research Chair in Swine Welfare at the University of Saskatchewan. Additionally, it collaborates with animal advocacy groups and maintains the Maple Leaf Animal Care Advisory Council to integrate best practices and scientific advancements into its operations.

The company is committed to avoiding close confinement for its animals, raising broiler breeders, broiler chickens, and turkeys in open barn systems. In 2023, 70% of broilers were housed at a density of 31 kg/m² or less. The company has introduced Advanced Open Sow Housing, eliminating gestation stalls for sows, and engages in research and collaboration with industry experts to enhance animal welfare. The company has reduced the use of routine physical alterations, replacing surgical castration with immunological castration and ceasing teeth clipping and ear notching in piglets. However, it continues to perform tail docking in piglets and certain physical alterations in broiler breeder chickens and turkeys, without clearly defining the criteria for necessity. It aims to minimise animal transportation times, targeting under four hours for poultry and under eight hours for other species. In 2023, 88% of its global animal protein supply was transported for less than eight hours. All broilers and turkeys, and 94% of pigs to owned processing plants, were within these timeframes. The company mandates humane slaughtering methods, requiring pre-slaughter stunning and backup stunning mechanisms. It uses controlled atmosphere stunning for chickens and CO2 stunning for pigs to ensure humane processing. To enhance animal welfare, the company provides enriched environments, with 40% of pigs and 9% of broiler chickens receiving such enhancements in 2023. Pigs receive hanging toys, while poultry enjoy ramp platforms, pecking stones, and bedding for dustbathing. While the company routinely assesses chicken breeds for welfare standards, it does not confirm exclusion of breeds prone to anatomical or metabolic disorders or prioritisation of welfare traits.

The company ensures its operations are certified by farm assurance programmes that include animal welfare criteria, adhering to standards set by recognised initiatives and conducting regular audits for compliance. Its pork operations are certified by the Canadian Pork Excellence PigCARE programme, the Canadian Quality Assurance Animal Care Assessment, and the North American Meat Institute's Animal Care and Handling Guidelines. In 2023, 96% of the company's pork was compliant with these programmes, with 39% certified under the revised PigCARE programme. For broiler chicken operations, 99.7% are certified under the Chicken Farmers of Canada Animal Care Programme. Additionally, 92% of broiler breeders comply with the Canadian Hatching Egg Producers Animal Care Programme, and 4% of broiler chickens are certified as Certified Humane® Raised and Handled and Certified Organic.

The company reports annual progress in animal welfare, showing year-on-year improvements. Compliance of broiler chickens with the Chicken Farmers of Canada Animal Care Program increased from 98% in 2020 to 99.7% in 2023. Similarly, compliance of broiler breeders with the Canadian Hatching Egg Producers Animal Care Program improved from 86% in 2020 to 92% in 2023.

The company has made several improvements in its pork operations concerning welfare risks. It has eliminated gestation stalls, with all owned sow spaces conforming to open sow housing standards. Surgical castration has been replaced with immunocastration. Additionally, the company supplies enrichment materials for natural behaviour and bedding for physical and thermal comfort, creating a more suitable environment for pigs. However, certain welfare risks remain due to the use of gestation crates by some third-party suppliers and the practice of tail docking on piglets. In its broiler chicken operations, the company adheres to the NFACC Code of Practice, with 51% of its global supply chain maintaining a stocking density of 31 kg/m² or below. At new facilities in London and Edmonton, 72% of chickens are processed using controlled atmosphere stunning. Environmental enrichments such as perches, huts, and pecking materials have been developed, although they cover only 9% of the broiler population. Trials of slower-growing breeds have not yet been integrated into the supply chain. While these initiatives are commendable, a more comprehensive strategy is required to fully integrate welfare considerations throughout the company's operations and supply chains.

The company states it considers local legislation and human rights in decision-making. However, it lacks a publicly available, high-level commitment to respecting human rights.

The company does not discuss how it monitors, assesses, and mitigates actual and potential human rights risks in its operations or supply chain.

The company does not disclose whether it has identified any human rights risks in its operations through human rights due diligence.

The company issues a high-level statement prohibiting child labour, discrimination, freely chosen employment, and harassment but does not explicitly commit to paying all employees a living wage or providing sick pay. The company reports conducting social compliance audits at five sites during the reporting year, though it is unclear which fair working conditions policies are covered by these audits. It requires suppliers to prohibit child labour, forced labour, discrimination, and harassment and to adhere to wage laws. However, these requirements do not necessarily ensure the provision of fair wages.

The company does not disclose whether it monitors compliance for selected policies in its supply chain through audits. It has implemented a grievance system, EthicsLine, which allows employees and suppliers to anonymously report complaints or concerns. A third-party representative documents each issue confidentially and forwards it to the relevant company authority for investigation. However, the company does not disclose the number of grievances received in the reporting year.

The company prioritises workplace health and safety, aiming for zero occupational injuries, and maintains a robust occupational health and safety management system. This system is continuously improved through its Health Accident Reduction Plan, which analyses strengths, weaknesses, opportunities, and threats. The company employs a third party to monitor OHSAS 18001 compliance and measure performance and holds certifications meeting regional standards, such as Alberta’s Certificate of Recognition and Ontario's WSIB Health and Safety Excellence Program. Its laboratories have ISO/IEC 17025 accreditation and are audited annually. Additionally, each site has a Joint Occupational Health and Safety Committee with management and employee representatives. The company raises awareness about antimicrobial resistance risks through regular emails but has not finalised a health hazard survey to assess these risks at the site level, leaving the collection of results unclear.

The company reports a consistent Total Recordable Incident Rate (TRIR) of 0.40 per 100 workers in both 2022 and 2023, a decline from 0.48 in 2021 and 2020. It has maintained a zero fatality rate for over a decade. The employee turnover rate is 47%, calculated by dividing the number of terminations by the average number of employees, but the turnover rate is not disaggregated by seniority level.

The company states that 62% of its employees are represented by a union and affirms support for employees' freedom of association. However, it does not detail specific measures to uphold these rights. The Supplier Code of Conduct similarly requires suppliers to respect their employees' right to freedom of association.

The company reports that approximately 62% of its workforce, equating to 8,259 employees, is covered by 18 collective agreements in Canada. It provides a breakdown of its workforce, distinguishing between permanent and temporary, and full-time and part-time contract types, with 12,600 permanent and 123 temporary employees. However, the size of its subcontracted workforce is not disclosed. The data covers 94% of the company's workers.

The company reports that 100% of its meat production plants are audited by third parties and certified under GFSI-recognised standards, ensuring high food safety across all operations. This includes annual audits by internal and external auditors following BRC or SQF standards. The company requires its raw material suppliers to obtain certification to a GFSI-benchmarked standard, actively tracking compliance and discontinuing business with non-compliant suppliers. This ensures adherence to stringent food safety standards throughout its supply chain. The company discloses certification levels among its suppliers: 100% of co-manufacturers, raw meat suppliers, and non-food-contact packaging suppliers; 99.6% of non-meat ingredient suppliers; and 95.6% of food-contact packaging suppliers are certified to a GFSI standard. By the end of 2023, 100% of plant-protein co-manufacturers, 95.2% of non-meat ingredient suppliers, 100% of food-contact packaging suppliers, and 78.6% of non-food-contact packaging suppliers met the GFSI standard.

The company conducts both internal and external food safety audits annually at all its meat production facilities, adhering to GFSI-recognised standards such as BRC or SQF. In 2023, it received 14 warnings for non-compliance with procedures, sanitation, and poultry slaughter regulations. For each warning, a root cause investigation is conducted, and a Corrective Action Plan is submitted to the Canadian Food Inspection Agency (CFIA) for approval. All warnings were subsequently resolved and closed. However, the company does not disclose any development or implementation of consumer-facing technology for food safety traceability.

The company provides a description of its product recall system, which includes roles and responsibilities, corrective action plans, and regulatory communication. It outlines non-compliance procedures, such as root cause investigations and submitting Corrective Action Plans (CAPs) to the CFIA for approval. However, it does not cover product traceability logistics, recovery or disposal procedures, or detailed communication plans for customers and consumers. In 2023, the company experienced one food safety recall due to allergen mislabelling in Cappola Genoa Salami, two additional recalls linked to suppliers, and one voluntary quality-related product withdrawal. It provides information on the voluntary nature of the recalls, their reasons, and the corrective and preventive actions taken. The company operates a Food Safety and Quality Management system that incorporates preventative and corrective actions. More than 478,000 food safety tests were conducted in 2023. It has developed Food Safety Incident Rate (FSIR) and Quality Incident Rate (QIR) metrics, which are reviewed monthly and quarterly with senior management. Corrective and preventative actions include root cause investigations and updates to standard operating procedures.

The company reports no food safety or quality-related market bans in 2023.

The Board of Directors' Safety and Sustainability Committee oversees the company's sustainability strategy, performance, and reporting. A double materiality assessment conducted in 2023 identified ESG topics impacting the company and its effects on the world. These issues are categorised within four pillars: Better Food, Better Care, Better Planet, and Business & Governance. The Board provides final input and approval for this assessment. Several Board members, including the CEO, reportedly possess sustainability expertise. Dr Randall Huffman, the Chief Food Safety and Sustainability Officer, has expertise in food safety. Both Dr Huffman and Casey Richards, members of the executive team, are knowledgeable in product development and innovation.

The company does not disclose executive monetary remuneration linked to sustainability performance. The company engages with public policy officials and trade/civil associations on alternative proteins, climate change, animal welfare, working conditions, and reducing antibiotic use. It discloses an extensive list of memberships in trade associations, alliances, and coalitions. These engagement activities are aligned with the goals of the Paris Agreement.

The company has an innovation centre in Chicago focused on plant-based food research and development. It has also invested in technologies to enhance animal welfare during transportation, such as hydraulic-lift deck trailers and climate-controlled poultry trailers. Additionally, the company conducts peer benchmarking to inform its materiality assessment.

In its 2023 Integrated Report, the company highlights its expansion into the plant protein market as a response to rising demand for sustainable eating, driven by health, ethical, and environmental concerns. It recognises that plant-based diets are considered more sustainable than traditional meat diets. Additionally, the company outlines climate change considerations in its 2023 CDP Climate questionnaire, acknowledging that emissions from its meat protein business pose reputational risks and may affect market share if consumers shift to lower-carbon protein alternatives. Despite initially anticipating strong growth in the plant protein sector, the company has revised its strategy due to lower-than-expected growth. It is unclear whether this is driven by consumer trends. A diversification strategy, aimed at achieving carbon neutrality and reducing climate-related risks, underpins its efforts to lessen dependency on resource-intensive animal agriculture. However, the company also identifies risks in this strategy, noting that ingredients for plant protein products are susceptible to adverse weather events, impacting supply and prices. In 2023, sales from plant-based protein sources declined to $147.0 million from $169.3 million in the previous year, a decrease of 13.2%, or 16.3% when accounting for foreign exchange impacts. The decline is mainly due to decreased volume in retail and food service sectors, somewhat offset by inflation-driven price adjustments. Despite these challenges, the company achieved its target of reaching neutral or better adjusted EBITDA in the Plant Protein Group by the end of 2023, with sales of $147.0 million and a 68.8% improvement in Adjusted EBITDA, resulting in a loss of $32.9 million.

The company has positioned itself as a North American leader in plant-based proteins with the acquisition of Lightlife® and Field Roast™ brands. Its Plant Protein Group operates through its subsidiary, Greenleaf Foods, providing vegan and non-GMO plant protein products, including refrigerated proteins, grain-based proteins, and vegan cheese for retail, foodservice, and industrial channels. Recent innovations include the launch of pea-protein hot dogs and flavoured tempeh crumbles. Over the past three years, the company has introduced new products like pepperoni, chicken alternatives, and the first pea-protein-based hot dog in North America. Additionally, it has expanded production capabilities by establishing a dedicated tempeh facility in Indianapolis, operational from 2022.